Suraksha, misuse of people’s money – Ceylon Teachers Union

The Secretary of Ceylon Teachers Union Joseph Starlin, issuing a press release, said Suraksha Insurance Scheme is a misuse of people’s money.

He complained that Suraksha Insurance Scheme, which was introduced for 43 lakhs of school children, has turned into a process of obtaining commissions and nurturing reinsurance companies.

The press release read: “Even though Rs 2700 million was allocated from the national budget, by the end of June, only Rs 52 worth benefits had been awarded. When there was absolutely no risk with regard to the insurance scheme, 90% of the funds of the insurance scheme had been reinsured with an Indian reinsurance company. Minister of Education had openly stated Rs 100 million received and it will be increased to Rs 500 million.”

He went on to state that as per the 4/2015 circular issued by the Ministry of Finance, no commission can be accepted from insurance processes between state institutions, and the circular has been violated.

He added that the Ministry of Education must clarify the basis on which the ministry launched a joint fund with Sri Lanka Insurance Corporation on 30 July 2018. Ceylon Teachers Union further expressed strong disapproval of these transactions carried out with reinsurance companies, and it has requested the President to investigate this matter.

Although it was previously said that this insurance scheme will provide insurance worth Rs 2 lakhs, it is now obvious that that amount will not be paid. In this context, the Minister of Education said the above amount will be increased to Rs 5 lakhs, he added.

He stressed that state funds have been misused through Suraksha Insurance Scheme and a proper investigation must be carried out.